Jamsil Els Falls Below 2 Billion Won Again... Jamsil Jugong 5-Danji Reconstruction Boom Also Pauses

Jamsil Apartment Complex, Songpa-gu, Seoul [Image Source=Yonhap News]

[Asia Economy Reporter Noh Kyung-jo] The flagship apartments in Jamsil-dong, Songpa-gu, Seoul, including Jugong Apartment Complex 5 and Jamsil Els, continue to see their sale prices fall around 2 billion KRW. Local real estate agents say that even the benefits of reconstruction cannot overcome the impact of consecutive base interest rate hikes.

According to the Ministry of Land, Infrastructure and Transport's actual transaction price information system on the 28th, the 84㎡ exclusive area unit of Jamsil Els recently traded at 1.95 billion KRW, dropping below 2 billion KRW again after two months. The same size unit was traded at 2.67 billion KRW in March this year but fell by more than 700 million KRW after a transaction at 1.95 billion KRW in August. It slightly rose to 2.1 billion KRW in September but then declined again. This is the first time since June 2020 that the actual transaction price has fallen below 2 billion KRW.

Across Seokchonhosu-ro, Resentz, which is also near Jamsilsaenae Station on Subway Line 2 like Jamsil Els, barely maintains prices in the 2 billion KRW range. Based on the 84㎡ exclusive area, prices ranged from 2.5 billion to 2.6 billion KRW from the end of last year to April this year but dropped to 2.03 billion KRW this month, falling 500 to 600 million KRW in six months.

An official from A Real Estate said, "Although the Jamsil Sports Complex redevelopment (MICE) is planned next to Jamsil Els, Resentz's sale prices remain slightly higher due to the wide distance between buildings and the advantage of being close to Jamsil Station's living area." He added, "Occasionally, urgent sale listings appear, but we advise buyers that it is not too late to wait and enter the market next year." This reflects realistic advice to buyers amid the prevailing expectation that housing prices will continue to decline next year.

Jamsil Jugong Complex 5, an ultra-station area apartment near Jamsil Station on Line 2 that passed the Seoul City Urban Planning Committee's reconstruction review in February this year, is also seeing a larger drop in actual transaction prices. The 81㎡ exclusive area unit recently traded at 2.441 billion KRW, down about 500 million KRW from 2.95 billion KRW in September last year.

Jamsil Jugong Complex 5 faces issues related to the relocation and site of Sincheon Elementary School. If the school remains in its current location during reconstruction, the surrounding area must be built low-rise due to sunlight rights. The union explains that this is unfavorable for building arrangement and floor area ratio. The union leader is scheduled to explain the maintenance plan next month.

An official from B Real Estate said, "No matter how favorable the reconstruction prospects are amid the economic cycle, they cannot overcome the effects of interest rate hikes." He added, "In a buyer-favored market, we need to watch how much further sale prices will fall."

This content was produced with the assistance of AI translation services.